R.R. Donnelley & Sons
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), R.R. Donnelley & Sons beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted slightly. Non-GAAP earnings per share contracted. GAAP loss per share increased.
Margins contracted across the board.
R.R. Donnelley & Sons chalked up revenue of $2.66 billion. The three analysts polled by S&P Capital IQ anticipated a top line of $2.55 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.43. The five earnings estimates compiled by S&P Capital IQ forecast $0.37 per share. Non-GAAP EPS of $0.43 for Q4 were 6.5% lower than the prior-year quarter's $0.46 per share. GAAP EPS were -$4.70 for Q4 versus -$1.78 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 22.0%, 90 basis points worse than the prior-year quarter. Operating margin was 6.7%, 40 basis points worse than the prior-year quarter. Net margin was -31.9%, much worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.44 billion. On the bottom line, the average EPS estimate is $0.37.
Next year's average estimate for revenue is $9.90 billion. The average EPS estimate is $1.70.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 155 members out of 187 rating the stock outperform, and 32 members rating it underperform. Among 53 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 45 give R.R. Donnelley & Sons a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on R.R. Donnelley & Sons is outperform, with an average price target of $12.67.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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